Afanti Arbitrage
Arbitrage, deep value, contrarian, long-term horizon

Intersections: Searching For Value In A Regulatory Mess

Intersections Inc (NASDAQ:INTX) faced significant regulatory problems in 2012. Earnings have continued to decline in 2013 as the company struggles to recalibrate its marketing strategy in response to a government crackdown. The stock price is more than 40% below its 52 week high. However, the regulatory actions are not likely fatal, and Intersections has a relatively strong financial position. Market overreaction may lead to an opportunity for bargain hunters.

Regulatory Issues

Intersections provides identity theft protection and credit information management products. In the years leading up to 2012, Intersections products were marketed as add on products to credit cards and banking services. Regulatory scrutiny of Intersections' add-on products sold by financial institutions increased with the creation of the...

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